Purpose: In this course, you have studied the preparation and interpretation of basic financial information for lending and investment activities. This project allows you to show this knowledge using the financial statement you have referenced throughout the semester. Use the financial statement for your chosen company (most of you will be studying a public company and will be able to use the financial statements available on the SEC Edgar website). When turning in the project, reference the financial statements of the company and the relevant footnote sections of your financial statement. For instance, when I ask a question about inventories, you should include the information from the appropriate footnotes (usually there is more than one footnote related to inventory). 1. Company Review a. Please review the company's website. From the perspective of a potential investor, do you find the website appealing? What about it stands out to you? b. What is the company's stated mission? Do you feel like the website reflects the mission of the company? Why or why not? c. There should be a section of the website for "investor relations." Does the website say anything about the company's potential for growth? What opportunities are described? d. What does the website say about the company's commitment to corporate social responsibility initiatives? e. What does the website say about the company's Board of Directors? How many members are on the Board? Are they independent directors or are they associated with the company? f. Look up the company's stock performance (you can use the stock ticker and look up the historical performance on Yahoo finance). Has the stock price been rising or falling? Why do you think this is? 2. Income Statement - use the income statement from the SEC Form 10-K for the most recent fiscal year. a. State your company's fiscal year end date. If it is not December 31st, why do you believe they chose to use the date they did? b. State the method, single-step or multiple-step, used in the statement. If it is a hybrid, explain. c. Calculate the gross profit ratio for each of the years reported. Briefly evaluate the trend of these results. d. Explain whether operating income is increasing or decreasing for the years reported. Explain the difference between operating income and net e. income. (not in terms of dollars but in terms of meaning) Describe the primary source of revenue for this company. What might that say about the ability of this company to do well in the future?